Vanguard 1235

Annual Report | December 31, 2021
Vanguard 500 Index Fund
Contents
Your Fund’s Performance at a Glance . . . . . . . . . . . . . . . . .1
About Your Fund’s Expenses . . . . . . . . . . . . . . . . . . . . . . . . . .2
Performance Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4
Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7
Please note: The opinions expressed in this report are just that—informed opinions. They should not be considered promises
or advice. Also, please keep in mind that the information and opinions cover the period through the date on the front of this
report. Of course, the risks of investing in your fund are spelled out in the prospectus.
Your Fund’s Performance at a Glance
• For the 12 months ended December 31, 2021, returns for Vanguard 500 Index Fund
ranged from 28.53% for Investor Shares to 28.70% for Institutional Select Shares,
closely tracking its target index, the Standard & Poor’s 500 Index. The fund provides
exposure to the stocks of the largest U.S. companies.
• The U.S. economy continued to heal over the 12 months. Vaccination programs
started to roll out shortly after the beginning of the year, helping hard-hit sectors such
as hospitality, leisure, and travel begin to rebound, and more workers returned to the
labor force. U.S. stocks turned in a strong performance even with the spread of new
COVID-19 variants, a surge in inflation, and Federal Reserve monetary policy turning
less accommodative.
• All 11 sectors recorded positive returns for the 12 months. Information technology,
financial, health care, and consumer discretionary stocks contributed most to returns.
• For the 10 years ended December 31, 2021, the fund posted average annual returns
of 16.39% for Investor Shares and 16.51% for both ETF Shares (based on net asset
value) and Admiral Shares. Institutional Select Shares recorded an annualized return of
18.85% since their 2016 inception.
Market Barometer
Average Annual Total Returns
Periods Ended December 31, 2021
One Year
Three Years
Five Years
Stocks
Russell 1000 Index (Large-caps)
26.45%
26.21%
18.43%
Russell 2000 Index (Small-caps)
14.82
20.02
12.02
Russell 3000 Index (Broad U.S. market)
25.66
25.79
17.97
8.36
13.66
9.89
FTSE All-World ex US Index (International)
Bonds
Bloomberg U.S. Aggregate Bond Index
(Broad taxable market)
-1.54%
4.79%
3.57%
Bloomberg Municipal Bond Index
(Broad tax-exempt market)
1.52
4.73
4.17
FTSE Three-Month U.S. Treasury Bill Index
0.05
0.95
1.11
7.04%
3.53%
2.92%
CPI
Consumer Price Index
1
About Your Fund’s Expenses
As a shareholder of the fund, you incur ongoing costs, which include costs for portfolio
management, administrative services, and shareholder reports (like this one), among others.
Operating expenses, which are deducted from a fund’s gross income, directly reduce the
investment return of the fund.
A fund’s expenses are expressed as a percentage of its average net assets. This figure is known
as the expense ratio. The following examples are intended to help you understand the ongoing
costs (in dollars) of investing in your fund and to compare these costs with those of other mutual
funds. The examples are based on an investment of $1,000 made at the beginning of the period
shown and held for the entire period.
The accompanying table illustrates your fund’s costs in two ways:
• Based on actual fund return. This section helps you to estimate the actual expenses that you
paid over the period. The ”Ending Account Value“ shown is derived from the fund‘s actual return,
and the third column shows the dollar amount that would have been paid by an investor who
started with $1,000 in the fund. You may use the information here, together with the amount you
invested, to estimate the expenses that you paid over the period.
To do so, simply divide your account value by $1,000 (for example, an $8,600 account value
divided by $1,000 = 8.6), then multiply the result by the number given for your fund under the
heading ”Expenses Paid During Period.“
• Based on hypothetical 5% yearly return. This section is intended to help you compare your
fund‘s costs with those of other mutual funds. It assumes that the fund had a yearly return of 5%
before expenses, but that the expense ratio is unchanged. In this case—because the return used
is not the fund’s actual return—the results do not apply to your investment. The example is useful
in making comparisons because the Securities and Exchange Commission requires all mutual
funds to calculate expenses based on a 5% return. You can assess your fund’s costs by comparing
this hypothetical example with the hypothetical examples that appear in shareholder reports of
other funds.
Note that the expenses shown in the table are meant to highlight and help you compare ongoing
costs only and do not reflect transaction costs incurred by the fund for buying and selling
securities. Further, the expenses do not include any purchase, redemption, or account service fees
described in the fund prospectus. If such fees were applied to your account, your costs would be
higher. Your fund does not carry a “sales load.”
The calculations assume no shares were bought or sold during the period. Your actual costs may
have been higher or lower, depending on the amount of your investment and the timing of any
purchases or redemptions.
You can find more information about the fund’s expenses, including annual expense ratios, in the
Financial Statements section of this report. For additional information on operating expenses and
other shareholder costs, please refer to your fund’s current prospectus.
2
Six Months Ended December 31, 2021
Beginning
Account Value
6/30/2021
Ending
Account Value
12/31/2021
Expenses
Paid During
Period
$0.75
Based on Actual Fund Return
500 Index Fund
Investor Shares
$1,000.00
$1,115.90
ETF Shares
1,000.00
1,116.40
0.16
Admiral™ Shares
1,000.00
1,116.50
0.21
Institutional Select Shares
1,000.00
1,116.60
0.05
$0.71
Based on Hypothetical 5% Yearly Return
500 Index Fund
Investor Shares
$1,000.00
$1,024.50
ETF Shares
1,000.00
1,025.05
0.15
Admiral Shares
1,000.00
1,025.00
0.20
Institutional Select Shares
1,000.00
1,025.16
0.05
The calculations are based on expenses incurred in the most recent six-month period. The fund’s annualized six-month expense ratios for
that period are 0.14% for Investor Shares, 0.03% for ETF Shares, 0.04% for Admiral Shares, and 0.01% for Institutional Select Shares.
The dollar amounts shown as “Expenses Paid” are equal to the annualized expense ratio multiplied by the average account value over the
period, multiplied by the number of days in the most recent six-month period, then divided by the number of days in the most recent
12-month period (184/365).
3
500 Index Fund
Performance Summary
All of the returns in this report represent past performance, which is not a guarantee of
future results that may be achieved by the fund. (Current performance may be lower or
higher than the performance data cited. For performance data current to the most recent
month-end, visit our website at vanguard.com/performance.) Note, too, that both
investment returns and principal value can fluctuate widely, so an investor’s shares, when
sold, could be worth more or less than their original cost. The returns shown do not reflect
taxes that a shareholder would pay on fund distributions or on the sale of fund shares.
Cumulative Performance: December 31, 2011, Through December 31, 2021
Initial Investment of $10,000
2012
2013
2014
2015
$49,000
45,615
2016
2017
2018
2019
2020
2021
6,000
Average Annual Total Returns
Periods Ended December 31, 2021
One
Year
Five
Years
Ten
Years
Final Value
of a $10,000
Investment
$45,615
500 Index Fund Investor Shares
28.53%
18.32%
16.39%
S&P 500 Index
28.71
18.47
16.55
46,257
Dow Jones U.S. Total Stock Market Float
Adjusted Index
25.66
17.92
16.24
45,050
One
Year
Five
Years
Ten
Years
Final Value
of a $10,000
Investment
500 Index Fund
ETF Shares Net Asset Value
28.66%
18.43%
16.51%
$46,098
500 Index Fund ETF Shares Market Price
28.60
18.41
16.51
46,091
S&P 500 Index
28.71
18.47
16.55
46,257
Dow Jones U.S. Total Stock Market Float Adjusted
Index
25.66
17.92
16.24
45,050
See Financial Highlights for dividend and capital gains information.
4
500 Index Fund
Average Annual Total Returns
Periods Ended December 31, 2021
One
Year
Five
Years
Ten
Years
Final Value
of a $10,000
Investment
$46,104
500 Index Fund Admiral Shares
28.66%
18.43%
16.51%
S&P 500 Index
28.71
18.47
16.55
46,257
Dow Jones U.S. Total Stock Market Float Adjusted
Index
25.66
17.92
16.24
45,050
One
Year
Five
Years
Since
Inception
(6/24/2016)
Final Value
of a $5,000,000,000
Investment
$12,966,881,000
500 Index Fund Institutional Select Shares
28.70%
18.47%
18.85%
S&P 500 Index
28.71
18.47
18.85
12,967,382,000
Dow Jones U.S. Total Stock Market Float
Adjusted Index
25.66
17.92
18.51
12,762,816,500
Since Inception performance is calculated from the Institutional Select Shares’ inception date for both the fund and its comparative
standard(s).
Cumulative Returns of ETF Shares: December 31, 2011, Through December 31, 2021
One
Year
Five
Years
Ten
Years
500 Index Fund ETF Shares Market Price
28.60%
132.78%
360.91%
500 Index Fund ETF Shares Net Asset Value
28.66
132.99
360.98
S&P 500 Index
28.71
133.41
362.57
For the ETF Shares, the market price is determined by the midpoint of the bid-offer spread as of the closing time of the New York Stock
Exchange (generally 4 p.m., Eastern time). The net asset value is also determined as of the NYSE closing time. For more information about
how the ETF Shares’ market prices have compared with their net asset value, visit vanguard.com, select your ETF, and then select the
Price and Performance tab. The ETF premium/discount analysis there shows the percentages of days on which the ETF Shares’ market
price was above or below the NAV.
5
500 Index Fund
Fund Allocation
As of December 31, 2021
Communication Services
10.1%
Consumer Discretionary
12.5
Consumer Staples
5.9
Energy
2.7
Financials
10.7
Health Care
13.3
Industrials
Information Technology
7.8
29.2
Materials
2.5
Real Estate
2.8
Utilities
2.5
The table reflects the fund’s investments, except for short-term
investments and derivatives. Sector categories are based on the
Global Industry Classification Standard (“GICS”), except for the
“Other” category (if applicable), which includes securities that
have not been provided a GICS classification as of the effective
reporting period.
The fund may invest in derivatives (such as futures and swap
contracts) for various reasons, including, but not limited to,
attempting to remain fully invested and tracking its target index as
closely as possible.
Global Industry Classification Standard (“GICS”) was developed by and is the exclusive property and a service mark of
MSCI Inc. (“MSCI”) and Standard and Poor’s, a division of McGraw-Hill Companies, Inc. (“S&P”), and is licensed for use
by Vanguard. Neither MSCI, S&P nor any third party involved in making or compiling the GICS or any GICS classification
makes any express or implied warranties or representations with respect to such standard or classification (or the results
to be obtained by the use thereof), and all such parties hereby expressly disclaim all warranties of originality, accuracy,
completeness, merchantability or fitness for a particular purpose with respect to any such standard or classification.
Without limiting any of the foregoing, in no event shall MSCI, S&P, any of its affiliates or any third party involved in
making or compiling the GICS or any GICS classification have any liability for any direct, indirect, special, punitive,
consequential or any other damages (including lost profits) even if notified of the possibility of such damages.
6
500 Index Fund
Financial Statements
Schedule of Investments
As of December 31, 2021
The fund files its complete schedule of portfolio holdings with the Securities and Exchange
Commission (SEC) for the first and third quarters of each fiscal year as an exhibit to its reports on
Form N-PORT. The fund’s Form N-PORT reports are available on the SEC’s website at
www.sec.gov.
Shares
Market
Value•
($000)
Common Stocks (99.5%)
Communication Services (10.1%)
*
Alphabet Inc. Class A
6,351,744
*
Alphabet Inc. Class C
5,904,299
*
Meta Platforms Inc.
Class A
49,965,809
*
Walt Disney Co.
38,370,522
*
Netflix Inc.
9,253,346
Comcast Corp.
Class A
96,278,834
Verizon
Communications
Inc.
87,421,915
AT&T Inc.
150,786,160
*
Charter
Communications
Inc. Class A
2,612,343
*
T-Mobile US Inc.
12,396,695
Activision Blizzard Inc.
16,447,000
*
Match Group Inc.
5,977,671
Electronic Arts Inc.
5,971,744
*
Twitter Inc.
16,884,523
*
Take-Two Interactive
Software Inc.
2,433,929
ViacomCBS Inc.
Class B
12,816,800
*
Live Nation
Entertainment Inc.
2,853,715
Omnicom Group Inc.
4,490,815
Interpublic Group of
Cos. Inc.
8,315,548
Fox Corp. Class A
6,662,470
Lumen Technologies
Inc.
19,467,926
News Corp. Class A
10,810,866
*
DISH Network Corp.
Class A
5,275,653
*
Discovery Inc. Class C
6,421,220
Fox Corp. Class B
3,224,079
*,1 Discovery Inc. Class A
3,553,865
News Corp. Class B
17,331
Consumer Discretionary (12.5%)
*
Amazon.com Inc.
9,209,552
*
Tesla Inc.
17,176,682
Home Depot Inc.
22,284,695
NIKE Inc. Class B
26,981,667
McDonald's Corp.
15,778,554
Lowe's Cos. Inc.
14,621,351
*
18,401,256
17,084,621
*
16,806,000
5,943,210
5,574,586
*
*
4,845,714
*
4,542,443
3,709,340
*
*
*
1,703,169
1,437,769
1,094,219
790,547
787,673
729,749
*
432,558
*
386,811
*
341,561
329,042
*
311,417
245,845
*
244,322
241,190
*
171,142
147,046
110,489
83,658
390
*
86,495,767
*
30,707,778
18,151,974
9,248,371
4,497,034
4,229,757
3,779,327
*
7
Starbucks Corp.
Target Corp.
Booking Holdings Inc.
TJX Cos. Inc.
General Motors Co.
Ford Motor Co.
Dollar General Corp.
Chipotle Mexican Grill
Inc. Class A
O'Reilly Automotive
Inc.
Marriott International
Inc. Class A
Aptiv plc
AutoZone Inc.
Hilton Worldwide
Holdings Inc.
eBay Inc.
Yum! Brands Inc.
Ross Stores Inc.
DR Horton Inc.
Dollar Tree Inc.
Lennar Corp. Class A
Etsy Inc.
Tractor Supply Co.
Expedia Group Inc.
VF Corp.
Pool Corp.
Best Buy Co. Inc.
Ulta Beauty Inc.
CarMax Inc.
Garmin Ltd.
Domino's Pizza Inc.
Caesars
Entertainment Inc.
Genuine Parts Co.
Darden Restaurants
Inc.
NVR Inc.
Bath & Body Works
Inc.
MGM Resorts
International
Royal Caribbean
Cruises Ltd.
Carnival Corp.
LKQ Corp.
Advance Auto Parts
Inc.
PulteGroup Inc.
Shares
Market
Value•
($000)
24,916,595
10,305,341
867,091
25,393,046
30,657,430
82,888,325
4,926,647
2,914,494
2,385,068
2,080,351
1,927,840
1,797,445
1,721,591
1,161,851
594,083
1,038,606
1,422,827
1,004,843
5,776,861
5,712,179
442,786
954,569
942,224
928,252
5,885,658
13,218,767
6,189,802
7,504,247
6,883,024
4,749,262
5,680,476
2,676,689
2,403,050
3,082,502
6,882,694
846,578
4,673,428
1,147,693
3,422,212
3,209,932
768,649
918,104
879,048
859,516
857,585
746,464
667,366
659,844
586,034
573,368
557,070
503,951
479,163
474,820
473,240
445,675
437,096
433,772
4,512,859
3,006,345
422,088
421,490
2,741,661
68,925
413,004
407,269
5,582,951
389,634
8,222,887
369,043
4,734,452
16,993,500
5,664,417
364,079
341,909
340,035
1,330,290
5,346,798
319,110
305,623
500 Index Fund
*
*
*
*
*
*
*
Whirlpool Corp.
Hasbro Inc.
Las Vegas Sands
Corp.
Tapestry Inc.
BorgWarner Inc.
(XNYS)
Mohawk Industries
Inc.
Wynn Resorts Ltd.
Penn National Gaming
Inc.
Newell Brands Inc.
Norwegian Cruise
Line Holdings Ltd.
PVH Corp.
Ralph Lauren Corp.
Class A
Under Armour Inc.
Class A
Under Armour Inc.
Class C
Gap Inc.
Lennar Corp. Class B
Consumer Staples (5.8%)
Procter & Gamble Co.
Costco Wholesale
Corp.
PepsiCo Inc.
Coca-Cola Co.
Walmart Inc.
Philip Morris
International Inc.
Mondelez
International Inc.
Class A
Altria Group Inc.
Estee Lauder Cos.
Inc. Class A
Colgate-Palmolive Co.
Kimberly-Clark Corp.
Constellation Brands
Inc. Class A
General Mills Inc.
Sysco Corp.
Archer-DanielsMidland Co.
Walgreens Boots
Alliance Inc.
*
Monster Beverage
Corp.
Kroger Co.
Hershey Co.
Tyson Foods Inc.
Class A
Kraft Heinz Co.
Church & Dwight Co.
Inc.
McCormick & Co. Inc.
Clorox Co.
Kellogg Co.
Conagra Brands Inc.
J M Smucker Co.
Hormel Foods Corp.
Brown-Forman Corp.
Class B
Shares
Market
Value•
($000)
1,283,210
2,739,095
301,118
278,785
7,257,330
5,812,165
273,166
235,974
5,063,481
228,211
1,159,013
2,221,559
211,149
188,921
3,504,895
7,989,948
181,729
174,501
7,813,664
1,500,162
162,055
159,992
1,029,764
122,398
4,034,912
85,500
4,483,284
4,524,159
76,975
80,878
79,851
7,360
Lamb Weston
Holdings Inc.
Campbell Soup Co.
Molson Coors
Beverage Co.
Class B
Energy (2.7%)
Exxon Mobil Corp.
Chevron Corp.
ConocoPhillips
EOG Resources Inc.
Schlumberger NV
Pioneer Natural
Resources Co.
Marathon Petroleum
Corp.
Phillips 66
Kinder Morgan Inc.
Valero Energy Corp.
Williams Cos. Inc.
Devon Energy Corp.
ONEOK Inc.
Occidental Petroleum
Corp.
Baker Hughes Co.
Class A
Halliburton Co.
Hess Corp.
Diamondback Energy
Inc.
Coterra Energy Inc.
Marathon Oil Corp.
APA Corp.
106,888,363
51,098,083
8,358,625
9,329,431
29,195,493
82,086,409
30,029,188
5,296,318
5,071,549
4,860,336
4,344,923
32,874,372
3,123,065
29,456,333
38,790,192
1,953,250
1,838,267
4,892,720
17,796,968
7,109,810
1,811,285
1,518,793
1,016,134
3,468,702
12,787,772
10,825,346
870,540
861,640
850,331
11,813,109
798,448
15,171,086
791,324
7,933,550
13,288,538
3,070,247
761,938
601,439
594,001
6,224,128
14,987,998
542,495
538,069
5,157,372
5,264,132
2,595,235
5,403,844
10,127,816
2,288,397
5,959,604
528,631
508,568
452,505
348,116
345,865
310,810
290,888
3,857,510
281,058
Shares
Market
Value•
($000)
3,085,362
4,273,787
195,550
185,739
3,976,717
89,394,613
40,704,332
27,851,211
12,355,008
29,620,199
5,470,056
4,776,653
2,010,301
1,097,495
887,125
4,794,427
872,011
12,999,125
9,252,046
41,173,348
8,632,557
24,055,298
13,293,003
9,415,331
831,814
670,403
653,009
648,391
626,400
585,557
553,245
18,733,015
543,070
18,450,200
18,895,629
5,819,168
443,912
432,143
430,793
3,597,560
17,186,066
16,445,569
7,674,356
387,997
326,535
270,036
206,364
Financials (10.6%)
*,1 Berkshire Hathaway
Inc. Class B
38,670,223
JPMorgan Chase &
Co.
62,402,281
Bank of America Corp. 152,075,109
Wells Fargo & Co.
84,193,451
Morgan Stanley
30,312,426
BlackRock Inc.
3,015,420
Goldman Sachs Group
Inc.
7,146,344
Charles Schwab Corp.
31,745,380
Citigroup Inc.
41,899,065
S&P Global Inc.
5,088,951
American Express Co.
13,247,988
Marsh & McLennan
Cos. Inc.
10,660,947
PNC Financial
Services Group Inc.
8,924,536
Chubb Ltd.
9,095,347
CME Group Inc.
7,588,973
Truist Financial Corp.
28,188,473
Intercontinental
Exchange Inc.
11,896,798
US Bancorp
28,492,949
Aon plc Class A
(XNYS)
4,652,457
Moody's Corp.
3,415,146
Capital One Financial
Corp.
8,987,516
Progressive Corp.
12,353,830
MSCI Inc. Class A
1,741,040
8
184,321
50,034,821
22,723,310
11,562,397
9,881,401
6,765,822
4,039,602
2,975,468
2,760,798
2,733,834
2,669,786
2,530,284
2,401,629
2,167,371
1,853,086
1,789,548
1,758,221
1,733,777
1,650,435
1,627,125
1,600,449
1,398,342
1,333,888
1,303,999
1,268,121
1,066,718
500 Index Fund
*
American International
Group Inc.
MetLife Inc.
T Rowe Price Group
Inc.
Bank of New York
Mellon Corp.
Prudential Financial
Inc.
SVB Financial Group
Travelers Cos. Inc.
First Republic Bank
Aflac Inc.
Arthur J Gallagher &
Co.
Discover Financial
Services
Ameriprise Financial
Inc.
Allstate Corp.
Fifth Third Bancorp
Willis Towers Watson
plc
State Street Corp.
Synchrony Financial
Northern Trust Corp.
Nasdaq Inc.
Hartford Financial
Services Group Inc.
Huntington
Bancshares Inc.
KeyCorp.
Regions Financial
Corp.
Citizens Financial
Group Inc.
M&T Bank Corp.
Raymond James
Financial Inc.
FactSet Research
Systems Inc.
Principal Financial
Group Inc.
Cincinnati Financial
Corp.
Signature Bank
Brown & Brown Inc.
MarketAxess Holdings
Inc.
Cboe Global Markets
Inc.
Lincoln National Corp.
Loews Corp.
W R Berkley Corp.
Comerica Inc.
Everest Re Group Ltd.
Zions Bancorp NA
Franklin Resources
Inc.
Assurant Inc.
Globe Life Inc.
Invesco Ltd.
People's United
Financial Inc.
Shares
Market
Value•
($000)
17,532,288
15,096,733
996,886
943,395
4,746,071
933,267
16,043,248
931,792
7,981,116
1,239,274
5,194,499
3,785,321
12,850,506
863,876
840,525
812,575
781,707
750,341
4,376,817
742,615
6,188,552
715,149
2,362,677
6,053,206
14,437,222
712,725
712,160
628,741
2,631,160
5,809,229
11,554,466
4,384,246
2,471,283
624,874
540,258
536,012
524,400
518,994
7,185,524
496,089
30,537,906
19,668,975
470,894
454,943
20,131,615
438,869
9,003,050
2,717,419
425,394
417,341
3,911,557
392,720
794,018
385,901
5,203,379
376,360
3,164,298
1,078,974
4,951,754
360,508
349,016
348,009
803,248
330,352
2,251,954
3,588,508
4,233,813
2,948,140
2,770,344
831,794
3,301,033
293,655
244,952
244,545
242,897
241,020
227,845
208,493
5,929,553
1,203,584
1,962,662
7,209,437
198,581
187,591
183,941
165,961
9,036,824
Health Care (13.2%)
UnitedHealth Group
Inc.
Johnson & Johnson
Pfizer Inc.
Thermo Fisher
Scientific Inc.
Abbott Laboratories
AbbVie Inc.
Eli Lilly & Co.
Danaher Corp.
Merck & Co. Inc.
Medtronic plc
Bristol-Myers Squibb
Co.
CVS Health Corp.
*
Intuitive Surgical Inc.
Amgen Inc.
Zoetis Inc.
Anthem Inc.
Gilead Sciences Inc.
Stryker Corp.
*
Moderna Inc.
*
Edwards Lifesciences
Corp.
Cigna Corp.
Becton Dickinson and
Co.
*
Regeneron
Pharmaceuticals
Inc.
HCA Healthcare Inc.
*
Boston Scientific
Corp.
Humana Inc.
*
Illumina Inc.
*
Vertex
Pharmaceuticals
Inc.
*
IDEXX Laboratories
Inc.
*
IQVIA Holdings Inc.
*
DexCom Inc.
Agilent Technologies
Inc.
*
Align Technology Inc.
*
Centene Corp.
Baxter International
Inc.
*
Mettler-Toledo
International Inc.
ResMed Inc.
McKesson Corp.
*
Biogen Inc.
West Pharmaceutical
Services Inc.
*
Laboratory Corp. of
America Holdings
Cerner Corp.
Zimmer Biomet
Holdings Inc.
PerkinElmer Inc.
STERIS plc
*
Waters Corp.
*
Catalent Inc.
Quest Diagnostics
Inc.
Cooper Cos. Inc.
161,036
90,829,306
9
Shares
Market
Value•
($000)
19,887,839
55,589,131
118,520,023
9,986,479
9,509,633
6,998,607
8,320,610
37,338,408
37,330,320
16,765,305
13,429,019
53,337,302
28,417,486
5,551,844
5,255,008
5,054,525
4,630,913
4,418,282
4,087,771
2,939,789
46,869,989
27,874,078
7,537,706
11,893,889
9,990,610
5,125,171
26,487,721
7,089,453
7,448,424
2,922,344
2,875,490
2,708,298
2,675,768
2,438,009
2,375,722
1,923,273
1,895,862
1,891,751
13,183,357
6,998,461
1,707,904
1,607,057
6,064,158
1,525,014
2,232,398
5,057,084
1,409,804
1,299,266
30,090,010
2,714,129
3,300,395
1,278,224
1,258,976
1,255,602
5,368,919
1,179,015
1,790,501
4,034,071
2,046,559
1,178,973
1,138,173
1,098,900
6,392,510
1,548,470
12,321,378
1,020,564
1,017,623
1,015,282
10,572,399
907,535
485,343
3,076,953
3,224,126
3,101,759
823,729
801,485
801,421
744,174
1,564,279
733,662
2,020,626
6,212,339
634,901
576,940
4,410,693
2,665,427
2,111,608
1,288,702
3,613,867
560,334
535,911
513,986
480,170
462,683
2,589,556
1,041,378
448,019
436,275
500 Index Fund
*
*
*
*
*
*
*
Bio-Techne Corp.
AmerisourceBergen
Corp. Class A
Hologic Inc.
Charles River
Laboratories
International Inc.
Viatris Inc.
ABIOMED Inc.
Bio-Rad Laboratories
Inc. Class A
Teleflex Inc.
Cardinal Health Inc.
Incyte Corp.
DENTSPLY SIRONA
Inc.
Henry Schein Inc.
Universal Health
Services Inc.
Class B
Organon & Co.
DaVita Inc.
Industrials (7.7%)
Union Pacific Corp.
United Parcel Service
Inc. Class B
Honeywell
International Inc.
Raytheon
Technologies Corp.
Caterpillar Inc.
*
Boeing Co.
General Electric Co.
3M Co.
Deere & Co.
Lockheed Martin
Corp.
CSX Corp.
Norfolk Southern
Corp.
Illinois Tool Works Inc.
Eaton Corp. plc
Waste Management
Inc.
FedEx Corp.
Northrop Grumman
Corp.
Johnson Controls
International plc
Emerson Electric Co.
IHS Markit Ltd.
Roper Technologies
Inc.
General Dynamics
Corp.
Trane Technologies plc
Carrier Global Corp.
L3Harris Technologies
Inc.
Parker-Hannifin Corp.
Rockwell Automation
Inc.
Cintas Corp.
Otis Worldwide Corp.
Verisk Analytics Inc.
Class A
Fastenal Co.
Shares
Market
Value•
($000)
829,576
429,173
3,158,214
5,352,654
419,695
409,799
*
*
1,065,297
25,533,366
961,003
401,383
345,466
345,163
456,135
989,637
5,947,498
3,963,011
344,642
325,076
306,237
290,885
4,616,408
2,929,617
257,549
227,133
*
*
*
1,544,805
5,351,991
1,377,694
200,299
162,968
156,726
113,213,164
13,574,807
3,419,901
15,396,529
3,300,092
14,536,702
3,031,048
31,605,319
11,422,477
11,665,095
23,188,306
12,168,032
5,957,931
2,719,954
2,361,483
2,348,417
2,190,599
2,161,408
2,042,915
5,182,727
46,835,046
1,841,993
1,760,998
5,138,472
6,031,215
8,416,697
1,529,774
1,488,504
1,454,574
8,126,436
5,160,644
1,356,302
1,334,749
3,146,826
1,218,042
14,965,753
12,623,073
8,421,898
1,216,865
1,173,567
1,119,439
2,227,519
1,095,627
4,893,675
5,016,233
18,299,495
1,020,184
1,013,430
992,565
4,143,569
2,726,167
883,575
867,248
2,449,122
1,856,154
8,969,349
854,376
822,592
780,961
3,402,994
12,145,434
778,367
778,037
*
*
*
*
Equifax Inc.
AMETEK Inc.
Old Dominion Freight
Line Inc.
TransDigm Group Inc.
Copart Inc.
Cummins Inc.
Stanley Black &
Decker Inc.
PACCAR Inc.
Republic Services Inc.
Class A
Fortive Corp.
Dover Corp.
Southwest Airlines
Co.
Ingersoll Rand Inc.
Delta Air Lines Inc.
United Rentals Inc.
Expeditors
International of
Washington Inc.
WW Grainger Inc.
Generac Holdings Inc.
Xylem Inc.
Jacobs Engineering
Group Inc.
IDEX Corp.
Westinghouse Air
Brake Technologies
Corp.
JB Hunt Transport
Services Inc.
Masco Corp.
Textron Inc.
Quanta Services Inc.
Fortune Brands Home
& Security Inc.
United Airlines
Holdings Inc.
CH Robinson
Worldwide Inc.
Leidos Holdings Inc.
Robert Half
International Inc.
Howmet Aerospace
Inc.
Pentair plc
Allegion plc
American Airlines
Group Inc.
Snap-on Inc.
A O Smith Corp.
Rollins Inc.
Huntington Ingalls
Industries Inc.
Nielsen Holdings plc
Alaska Air Group Inc.
Shares
Market
Value•
($000)
2,576,089
4,884,680
754,253
718,243
1,967,007
1,105,447
4,505,954
3,020,191
704,936
703,374
683,193
658,824
3,442,362
7,330,612
649,298
647,000
4,418,679
7,570,754
3,039,799
616,185
577,573
552,027
12,496,818
8,605,218
13,511,501
1,528,531
535,364
532,405
528,029
507,916
3,576,200
913,643
1,332,167
3,806,831
480,248
473,486
468,816
456,515
2,751,785
1,604,980
383,131
379,289
3,946,601
363,521
1,774,184
5,156,257
4,656,005
3,010,190
362,643
362,072
359,444
345,148
2,867,466
306,532
6,840,696
299,486
2,745,976
2,964,342
295,549
263,530
2,351,477
262,237
8,122,329
3,494,110
1,893,291
258,534
255,175
250,747
13,669,677
1,134,956
2,810,498
4,780,239
245,507
244,447
241,281
163,532
845,194
7,572,104
2,644,976
157,832
155,304
137,803
66,298,015
Information Technology (29.0%)
Apple Inc.
329,111,779 58,440,379
Microsoft Corp.
158,536,434 53,318,974
NVIDIA Corp.
52,789,400 15,525,890
Visa Inc. Class A
35,161,122
7,619,767
Mastercard Inc.
Class A
18,317,734
6,581,928
Broadcom Inc.
8,691,603
5,783,480
*
Adobe Inc.
10,046,860
5,697,172
10
500 Index Fund
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
Cisco Systems Inc.
Accenture plc Class A
salesforce.com Inc.
PayPal Holdings Inc.
Intel Corp.
QUALCOMM Inc.
Intuit Inc.
Texas Instruments Inc.
Advanced Micro
Devices Inc.
Applied Materials Inc.
Oracle Corp.
ServiceNow Inc.
International Business
Machines Corp.
Micron Technology
Inc.
Automatic Data
Processing Inc.
Lam Research Corp.
Analog Devices Inc.
Fidelity National
Information
Services Inc.
KLA Corp.
Autodesk Inc.
Fiserv Inc.
NXP Semiconductors
NV
Synopsys Inc.
TE Connectivity Ltd.
Xilinx Inc.
Amphenol Corp.
Class A
Cadence Design
Systems Inc.
Fortinet Inc.
Microchip Technology
Inc.
Cognizant Technology
Solutions Corp.
Class A
Motorola Solutions
Inc.
Paychex Inc.
HP Inc.
Global Payments Inc.
Keysight Technologies
Inc.
EPAM Systems Inc.
ANSYS Inc.
Arista Networks Inc.
Zebra Technologies
Corp. Class A
Corning Inc.
CDW Corp.
Gartner Inc.
Teradyne Inc.
Skyworks Solutions
Inc.
Enphase Energy Inc.
VeriSign Inc.
Seagate Technology
Holdings plc
Tyler Technologies Inc.
Trimble Inc.
Monolithic Power
Systems Inc.
Shares
Market
Value•
($000)
89,058,783
13,337,578
20,672,360
24,809,649
85,877,844
23,649,770
5,979,319
19,501,073
5,643,655
5,529,093
5,253,467
4,678,604
4,422,709
4,324,833
3,846,018
3,675,367
25,499,769
19,066,347
34,056,947
4,202,082
3,669,417
3,000,280
2,970,106
2,727,613
18,936,466
2,531,048
23,620,704
2,200,269
*
8,897,882
2,973,148
11,348,173
2,194,040
2,138,139
1,994,668
*
12,858,289
3,201,716
4,642,420
12,547,330
1,403,482
1,377,090
1,305,402
1,302,287
5,615,583
3,220,325
6,890,828
5,234,376
1,279,118
1,186,690
1,111,766
1,109,845
12,629,171
1,104,547
5,852,275
2,865,589
1,090,571
1,029,893
11,717,495
1,020,125
11,091,227
984,014
3,566,726
6,776,691
24,338,266
6,126,973
969,079
925,018
916,822
828,244
3,889,701
1,197,647
1,842,513
4,736,575
803,262
800,567
739,069
680,883
1,128,326
16,219,893
2,865,761
1,736,334
3,441,720
671,580
603,867
586,851
580,491
562,824
3,486,839
2,848,283
2,040,069
540,948
521,065
517,810
4,324,390
865,534
5,299,395
488,570
465,614
462,054
914,705
451,251
*
*
*
*
*
*
*
*
*
*
*
Broadridge Financial
Solutions Inc.
Hewlett Packard
Enterprise Co.
NetApp Inc.
Teledyne Technologies
Inc.
Western Digital Corp.
Paycom Software Inc.
Akamai Technologies
Inc.
FleetCor Technologies
Inc.
Qorvo Inc.
NortonLifeLock Inc.
F5 Inc.
SolarEdge
Technologies Inc.
Ceridian HCM Holding
Inc.
PTC Inc.
Jack Henry &
Associates Inc.
Citrix Systems Inc.
Juniper Networks Inc.
DXC Technology Co.
IPG Photonics Corp.
GreenSky Inc. Class A
Materials (2.6%)
Linde plc
Sherwin-Williams Co.
Air Products and
Chemicals Inc.
Freeport-McMoRan
Inc.
Ecolab Inc.
Newmont Corp.
Dow Inc.
DuPont de Nemours
Inc.
PPG Industries Inc.
International Flavors &
Fragrances Inc.
Corteva Inc.
Nucor Corp.
Ball Corp.
Vulcan Materials Co.
Martin Marietta
Materials Inc.
Albemarle Corp.
LyondellBasell
Industries NV
Class A
Amcor plc
Celanese Corp.
Class A
International Paper
Co.
Avery Dennison Corp.
Eastman Chemical
Co.
CF Industries
Holdings Inc.
Mosaic Co.
FMC Corp.
Packaging Corp. of
America
11
Shares
Market
Value•
($000)
2,460,981
449,917
27,613,898
4,722,125
435,471
434,388
984,964
6,578,299
1,016,197
430,321
428,971
421,915
3,430,556
401,512
1,715,241
2,328,432
12,288,551
1,272,969
383,940
364,144
319,257
311,508
1,107,970
310,863
2,877,012
2,229,912
300,533
270,154
1,563,725
2,634,684
6,867,429
5,326,559
753,187
719,667
261,126
249,215
245,236
171,462
129,654
8,175
248,515,377
10,822,950
5,093,540
3,749,395
1,793,741
4,674,209
1,422,175
31,008,361
5,264,342
16,838,318
15,617,424
1,293,979
1,234,962
1,044,313
885,820
10,940,158
5,012,939
883,746
864,431
5,374,518
15,391,796
6,034,868
6,838,913
2,801,775
809,671
727,724
688,880
658,382
581,592
1,317,063
2,469,804
580,193
577,366
5,550,308
32,388,749
511,905
388,989
2,299,757
386,497
8,180,892
1,748,210
384,338
378,610
2,839,928
343,376
4,530,516
7,818,320
2,677,577
320,670
307,182
294,239
2,005,210
273,009
500 Index Fund
Westrock Co.
Sealed Air Corp.
Real Estate (2.8%)
American Tower Corp.
Prologis Inc.
Crown Castle
International Corp.
Equinix Inc.
Public Storage
Simon Property Group
Inc.
Digital Realty Trust
Inc.
SBA Communications
Corp. Class A
Realty Income Corp.
Welltower Inc.
*
CBRE Group Inc.
Class A
AvalonBay
Communities Inc.
Alexandria Real Estate
Equities Inc.
Equity Residential
Weyerhaeuser Co.
Extra Space Storage
Inc.
Mid-America
Apartment
Communities Inc.
Duke Realty Corp.
Essex Property Trust
Inc.
Ventas Inc.
Healthpeak Properties
Inc.
UDR Inc.
Boston Properties Inc.
Kimco Realty Corp.
Iron Mountain Inc.
*
Host Hotels & Resorts
Inc.
Regency Centers
Corp.
Federal Realty
Investment Trust
Vornado Realty Trust
Utilities (2.5%)
NextEra Energy Inc.
Duke Energy Corp.
Southern Co.
Dominion Energy Inc.
Exelon Corp.
American Electric
Power Co. Inc.
Shares
Market
Value•
($000)
5,634,366
3,129,823
249,941
211,169
Sempra Energy
(XNYS)
Xcel Energy Inc.
American Water
Works Co. Inc.
Public Service
Enterprise Group
Inc.
Eversource Energy
WEC Energy Group
Inc.
Edison International
DTE Energy Co.
Ameren Corp.
Consolidated Edison
Inc.
Entergy Corp.
FirstEnergy Corp.
PPL Corp.
CMS Energy Corp.
CenterPoint Energy
Inc.
AES Corp.
Evergy Inc.
Alliant Energy Corp.
Atmos Energy Corp.
NiSource Inc.
NRG Energy Inc.
Pinnacle West Capital
Corp.
21,846,295
9,616,381
15,611,398
2,812,791
2,628,335
9,126,261
1,901,252
3,221,392
1,905,016
1,608,155
1,206,604
6,938,952
1,108,636
5,992,422
1,059,880
2,297,015
11,946,429
9,190,997
893,585
855,245
788,312
7,066,853
766,824
2,950,711
745,320
2,977,456
7,205,516
15,815,680
663,854
652,099
651,290
2,826,939
640,952
2,430,730
8,040,282
557,707
527,764
1,374,153
8,432,000
484,018
431,044
11,387,230
6,138,512
3,002,675
13,020,753
6,114,177
410,965
368,249
345,848
320,961
319,955
15,071,818
262,099
Total Investments (99.9%)
(Cost $433,565,816)
3,254,690
245,241
Other Assets and
Liabilities—Net (0.1%)
1,477,568
3,357,544
201,422
140,547
3,868,103
1,703,827
1,534,725
1,343,496
1,193,252
10,635,120
946,207
Market
Value•
($000)
6,743,207
11,374,431
891,991
770,049
3,833,033
723,907
10,677,244
7,259,242
712,492
660,446
6,659,806
8,020,951
4,090,822
5,438,152
646,467
547,430
489,017
484,050
5,658,618
4,245,326
11,492,888
15,847,661
6,119,366
482,793
478,236
477,989
476,381
398,065
13,282,544
14,072,154
4,842,582
5,286,240
2,797,344
8,298,606
5,168,885
370,716
341,953
332,250
324,945
293,078
229,125
222,676
2,380,712
168,054
21,111,720
Total Common Stocks
(Cost $429,622,523)
851,558,856
Temporary Cash Investments (0.4%)
Money Market Fund (0.4%)
2,3 Vanguard Market
Liquidity Fund,
0.090%
(Cost $3,943,293)
39,443,395
Net Assets (100%)
3,943,945
855,502,801
578,715
856,081,516
Cost is in $000.
• See Note A in Notes to Financial Statements.
* Non-income-producing security.
1 Includes partial security positions on loan to broker-dealers. The
total value of securities on loan is $31,699,000.
2 Affiliated money market fund available only to Vanguard funds
and certain trusts and accounts managed by Vanguard. Rate
shown is the 7-day yield.
3 Collateral of $33,645,000 was received for securities on loan.
23,602,718
41,432,126
16,242,395
22,378,603
17,101,530
20,658,803
Shares
12
500 Index Fund
Derivative Financial Instruments Outstanding as of Period End
Futures Contracts
($000)
Expiration
Number of
Long (Short)
Contracts
Notional
Amount
Value and
Unrealized
Appreciation
(Depreciation)
March 2022
17,007
4,046,390
90,333
Long Futures Contracts
E-mini S&P 500 Index
Over-the-Counter Total Return Swaps
Reference Entity
Floating
Value and
Value and
Interest Rate
Unrealized
Unrealized
Received
Notional
(Paid) Appreciation (Depreciation)
Amount
Termination
($000)
($000)
(%)
Date Counterparty
($000)
Consolidated Edison Inc.
8/31/22
(0.570)1
1,781
—
Kroger Co.
1/31/22
BANA 154,429
GSI
46,220
(0.108)2
—
(962)
Netflix Inc.
8/31/22
BANA
60,244
(0.070)1
—
(4)
Signature Bank
8/31/23
BANA
64,694
(0.820)1
—
(15)
—
State Street Corp.
8/31/23
BANA
176,700
(0.670)1
988
Visa Inc. Class A
8/31/22
BANA
54,178
0.0301
95
—
Williams Cos. Inc.
8/31/22
BANA
41,664
(0.470)1
959
—
3,823
(981)
1 Based on 1M USD Overnight Bank Funding Rate as of the most recent payment date. Floating interest payment received/paid monthly.
2 Based on 1M USD London Interbank Offered Rate (LIBOR) as of the most recent payment date. Floating interest payment received/paid
monthly.
1M—1-month.
BANA—Bank of America, N.A.
GSI—Goldman Sachs International.
At December 31, 2021, the counterparties had deposited in segregated accounts securities with a
value of $31,311,000 in connection with open over-the-counter swap contracts.
See accompanying Notes, which are an integral part of the Financial Statements.
13
500 Index Fund
Statement of Assets and Liabilities
As of December 31, 2021
($000s, except shares and per-share amounts)
Amount
Assets
Investments in Securities, at Value
Unaffiliated Issuers (Cost $429,622,523)
851,558,856
Affiliated Issuers (Cost $3,943,293)
3,943,945
Total Investments in Securities
855,502,801
Investment in Vanguard
27,259
Cash Collateral Pledged—Futures Contracts
195,589
Cash Collateral Pledged—Over-the-Counter Swap Contracts
Receivables for Investment Securities Sold
1,090
388,831
Receivables for Accrued Income
528,014
Receivables for Capital Shares Issued
453,802
Unrealized Appreciation—Over-the-Counter Swap Contracts
Total Assets
3,823
857,101,209
Liabilities
Due to Custodian
14,165
Payables for Investment Securities Purchased
34,377
Collateral for Securities on Loan
33,645
Payables for Capital Shares Redeemed
912,564
Payables to Vanguard
12,269
Variation Margin Payable—Futures Contracts
11,692
Unrealized Depreciation—Over-the-Counter Swap Contracts
Total Liabilities
981
1,019,693
Net Assets
856,081,516
14
500 Index Fund
Statement of Assets and Liabilities (continued)
At December 31, 2021, net assets consisted of:
($000s, except shares and per-share amounts)
Amount
Paid-in Capital
442,138,249
Total Distributable Earnings (Loss)
413,943,267
Net Assets
856,081,516
Investor Shares—Net Assets
Applicable to 10,257,635 outstanding $.001 par value shares of
beneficial interest (unlimited authorization)
Net Asset Value Per Share—Investor Shares
4,511,974
$439.86
ETF Shares—Net Assets
Applicable to 641,164,020 outstanding $.001 par value shares of
beneficial interest (unlimited authorization)
Net Asset Value Per Share—ETF Shares
279,849,657
$436.47
Admiral Shares—Net Assets
Applicable to 1,030,491,482 outstanding $.001 par value shares of
beneficial interest (unlimited authorization)
Net Asset Value Per Share—Admiral Shares
453,239,325
$439.83
Institutional Select Shares—Net Assets
Applicable to 508,370,890 outstanding $.001 par value shares of
beneficial interest (unlimited authorization)
Net Asset Value Per Share—Institutional Select Shares
See accompanying Notes, which are an integral part of the Financial Statements.
15
118,480,560
$233.06
500 Index Fund
Statement of Operations
Year Ended
December 31, 2021
($000)
Investment Income
Income
10,462,119
Dividends1
2,064
Interest2
Securities Lending—Net
3,503
Total Income
10,467,686
Expenses
The Vanguard Group—Note B
Investment Advisory Services
12,702
Management and Administrative—Investor Shares
6,222
Management and Administrative—ETF Shares
53,650
Management and Administrative—Admiral Shares
141,142
Management and Administrative—Institutional Select Shares
Marketing and Distribution—Investor Shares
8,566
240
Marketing and Distribution—ETF Shares
9,348
Marketing and Distribution—Admiral Shares
11,390
Marketing and Distribution—Institutional Select Shares
Custodian Fees
2
2,547
Auditing Fees
46
Shareholders’ Reports—Investor Shares
1
Shareholders’ Reports—ETF Shares
2,083
Shareholders’ Reports—Admiral Shares
1,931
Shareholders’ Reports—Institutional Select Shares
—
Trustees’ Fees and Expenses
219
Total Expenses
250,089
Net Investment Income
10,217,597
Realized Net Gain (Loss)
30,213,184
Investment Securities Sold2,3
Futures Contracts
608,552
Swap Contracts
148,534
Realized Net Gain (Loss)
30,970,270
Change in Unrealized Appreciation (Depreciation)
147,156,820
Investment Securities2
Futures Contracts
61,498
Swap Contracts
(2,581)
Change in Unrealized Appreciation (Depreciation)
147,215,737
Net Increase (Decrease) in Net Assets Resulting from Operations
188,403,604
1 Dividends are net of foreign withholding taxes of $1,442,000.
2 Interest income, realized net gain (loss), capital gain distributions received, and change in unrealized appreciation (depreciation) from an
affiliated company of the fund were $2,063,000, $42,000, $83,000, and ($274,000), respectively. Purchases and sales are for temporary
cash investment purposes.
3 Includes $30,494,518,000 of net gain (loss) resulting from in-kind redemptions.
See accompanying Notes, which are an integral part of the Financial Statements.
16
500 Index Fund
Statement of Changes in Net Assets
Year Ended December 31,
2021
($000)
2020
($000)
Increase (Decrease) in Net Assets
Operations
Net Investment Income
10,217,597
10,026,083
Realized Net Gain (Loss)
30,970,270
26,755,026
Change in Unrealized Appreciation (Depreciation)
147,215,737
63,111,484
Net Increase (Decrease) in Net Assets Resulting from Operations
188,403,604
99,892,593
Distributions
Investor Shares
ETF Shares
(59,162)
(71,146)
(3,296,146)
(2,722,198)
Admiral Shares
(5,602,317)
(5,575,193)
Institutional Select Shares
(1,515,092)
(1,461,548)
(10,472,717)
(9,830,085)
Total Distributions
Capital Share Transactions
Investor Shares
(1,095,734)
(861,357)
ETF Shares
47,041,730
21,243,502
Admiral Shares
(2,715,238)
(10,267,593)
Institutional Select Shares
(1,997,365)
434,639
41,233,393
10,549,191
219,164,280
100,611,699
Beginning of Period
636,917,236
536,305,537
End of Period
856,081,516
636,917,236
Net Increase (Decrease) from Capital Share Transactions
Total Increase (Decrease)
Net Assets
See accompanying Notes, which are an integral part of the Financial Statements.
17
500 Index Fund
Financial Highlights
Investor Shares
For a Share Outstanding
Throughout Each Period
Net Asset Value, Beginning of Period
Year Ended December 31,
2021
$346.60
2020
$298.16
2019
$231.44
2018
$246.82
2017
$206.57
Investment Operations
Net Investment Income1
4.910
5.128
4.801
4.896
4.221
Net Realized and Unrealized Gain (Loss) on
Investments
93.389
48.323
67.211
(15.776)
40.205
Total from Investment Operations
98.299
53.451
72.012
(10.880)
44.426
(5.039)
(5.011)
(5.292)
(4.500)
(4.176)
—
—
—
—
—
(5.039)
(5.011)
(5.292)
(4.500)
(4.176)
Distributions
Dividends from Net Investment Income
Distributions from Realized Capital Gains
Total Distributions
Net Asset Value, End of Period
$439.86
$346.60
$298.16
$231.44
$246.82
28.53%
18.25%
31.33%
-4.52%
21.67%
Net Assets, End of Period (Millions)
$4,512
$4,504
$4,723
$23,162
$27,656
Ratio of Total Expenses to
Average Net Assets
0.14%
0.14%
0.14%
0.14%
0.14%
Ratio of Net Investment Income to
Average Net Assets
1.25%
1.73%
1.82%
1.95%
1.87%
2%
4%
4%
4%
3%
Total Return2
Ratios/Supplemental Data
Portfolio Turnover Rate3
1 Calculated based on average shares outstanding.
2 Total returns do not include account service fees that may have applied in the periods shown. Fund prospectuses provide information
about any applicable account service fees.
3 Excludes the value of portfolio securities received or delivered as a result of in-kind purchases or redemptions of the fund’s capital
shares, including ETF Creation Units.
See accompanying Notes, which are an integral part of the Financial Statements.
18
500 Index Fund
Financial Highlights
ETF Shares
For a Share Outstanding
Throughout Each Period
Net Asset Value, Beginning of Period
Year Ended December 31,
2021
$343.93
2020
$295.87
2019
$229.68
2018
$244.94
2017
$205.00
Investment Operations
Net Investment Income1
5.353
5.413
5.298
5.196
4.434
Net Realized and Unrealized Gain (Loss) on
Investments
92.624
47.950
66.463
(15.719)
39.874
Total from Investment Operations
97.977
53.363
71.761
(10.523)
44.308
(5.437)
(5.303)
(5.571)
(4.737)
(4.368)
—
—
—
—
—
(5.437)
(5.303)
(5.571)
(4.737)
(4.368)
Distributions
Dividends from Net Investment Income
Distributions from Realized Capital Gains
Total Distributions
Net Asset Value, End of Period
Total Return
$436.47
$343.93
$295.87
$229.68
$244.94
28.66%
18.35%
31.46%
-4.42%
21.78%
Ratios/Supplemental Data
Net Assets, End of Period (Millions)
$279,850
$177,991
$130,728
$90,639
$83,640
Ratio of Total Expenses to
Average Net Assets
0.03%
0.03%
0.03%
0.03%
0.04%
Ratio of Net Investment Income to
Average Net Assets
1.36%
1.83%
1.98%
2.06%
1.97%
2%
4%
4%
4%
3%
Portfolio Turnover Rate2
1 Calculated based on average shares outstanding.
2 Excludes the value of portfolio securities received or delivered as a result of in-kind purchases or redemptions of the fund’s capital
shares, including ETF Creation Units.
See accompanying Notes, which are an integral part of the Financial Statements.
19
500 Index Fund
Financial Highlights
Admiral Shares
For a Share Outstanding
Throughout Each Period
Net Asset Value, Beginning of Period
Year Ended December 31,
2021
$346.57
2020
$298.14
2019
$231.44
2018
$246.82
2017
$206.57
Investment Operations
Net Investment Income1
5.326
5.427
5.319
5.181
4.458
Net Realized and Unrealized Gain (Loss) on
Investments
93.371
48.314
66.962
(15.808)
40.193
Total from Investment Operations
98.697
53.741
72.281
(10.627)
44.651
(5.437)
(5.311)
(5.581)
(4.753)
(4.401)
—
—
—
—
—
(5.437)
(5.311)
(5.581)
(4.753)
(4.401)
Distributions
Dividends from Net Investment Income
Distributions from Realized Capital Gains
Total Distributions
Net Asset Value, End of Period
Total Return2
$439.83
$346.57
$298.14
$231.44
$246.82
28.66%
18.37%
31.46%
-4.43%
21.79%
Ratios/Supplemental Data
Net Assets, End of Period (Millions)
$453,239
$359,553
$319,624
$230,375
$235,232
Ratio of Total Expenses to
Average Net Assets
0.04%
0.04%
0.04%
0.04%
0.04%
Ratio of Net Investment Income to
Average Net Assets
1.35%
1.83%
1.97%
2.05%
1.97%
2%
4%
4%
4%
3%
Portfolio Turnover Rate3
1 Calculated based on average shares outstanding.
2 Total returns do not include account service fees that may have applied in the periods shown. Fund prospectuses provide information
about any applicable account service fees.
3 Excludes the value of portfolio securities received or delivered as a result of in-kind purchases or redemptions of the fund’s capital
shares, including ETF Creation Units.
See accompanying Notes, which are an integral part of the Financial Statements.
20
500 Index Fund
Financial Highlights
Institutional Select Shares
For a Share Outstanding
Throughout Each Period
Net Asset Value, Beginning of Period
Year Ended December 31,
2021
$183.64
2020
$157.98
2019
$122.64
2018
$130.79
2017
$109.45
Investment Operations
Net Investment Income1
2.885
2.924
2.857
2.808
2.423
Net Realized and Unrealized Gain (Loss) on
Investments
49.478
25.597
35.484
(8.400)
21.283
Total from Investment Operations
52.363
28.521
38.341
(5.592)
23.706
(2.943)
(2.861)
(3.001)
(2.558)
(2.366)
—
—
—
—
—
(2.943)
(2.861)
(3.001)
(2.558)
(2.366)
Distributions
Dividends from Net Investment Income
Distributions from Realized Capital Gains
Total Distributions
Net Asset Value, End of Period
Total Return
$233.06
$183.64
$157.98
$122.64
$130.79
28.70%
18.40%
31.49%
-4.40%
21.83%
Ratios/Supplemental Data
Net Assets, End of Period (Millions)
$118,481
$94,870
$81,230
$56,531
$44,907
Ratio of Total Expenses to
Average Net Assets
0.01%
0.01%
0.01%
0.01%
0.01%
Ratio of Net Investment Income to
Average Net Assets
1.38%
1.86%
2.00%
2.08%
2.00%
2%
4%
4%
4%
3%
Portfolio Turnover Rate2
1 Calculated based on average shares outstanding.
2 Excludes the value of portfolio securities received or delivered as a result of in-kind purchases or redemptions of the fund’s capital
shares, including ETF Creation Units.
See accompanying Notes, which are an integral part of the Financial Statements.
21
500 Index Fund
Notes to Financial Statements
Vanguard 500 Index Fund is registered under the Investment Company Act of 1940 as an open-end
investment company, or mutual fund. The fund offers four classes of shares: Investor Shares, ETF
Shares, Admiral Shares, and Institutional Select Shares. Each of the share classes has different
eligibility and minimum purchase requirements, and is designed for different types of investors.
ETF Shares are listed for trading on Cboe BZK Exchange, Inc; they can be purchased and sold
through a broker.
Market disruptions associated with the COVID-19 pandemic have had a global impact, and
uncertainty exists as to the long-term implications. Such disruptions can adversely affect assets of
the fund and thus fund performance.
A. The following significant accounting policies conform to generally accepted accounting
principles for U.S. investment companies. The fund consistently follows such policies in preparing
its financial statements.
1. Security Valuation: Securities are valued as of the close of trading on the New York Stock
Exchange (generally 4 p.m., Eastern time) on the valuation date. Equity securities are valued at the
latest quoted sales prices or official closing prices taken from the primary market in which each
security trades; such securities not traded on the valuation date are valued at the mean of the
latest quoted bid and asked prices. Securities for which market quotations are not readily available,
or whose values have been materially affected by events occurring before the fund’s pricing time
but after the close of the securities’ primary markets, are valued by methods deemed by the board
of trustees to represent fair value. Investments in Vanguard Market Liquidity Fund are valued at
that fund's net asset value. Temporary cash investments are valued using the latest bid prices or
using valuations based on a matrix system (which considers such factors as security prices, yields,
maturities, and ratings), both as furnished by independent pricing services.
2. Futures Contracts: The fund uses index futures contracts to a limited extent, with the objectives
of maintaining full exposure to the stock market, maintaining liquidity, and minimizing transaction
costs. The fund may purchase futures contracts to immediately invest incoming cash in the
market, or sell futures in response to cash outflows, thereby simulating a fully invested position in
the underlying index while maintaining a cash balance for liquidity. The primary risks associated
with the use of futures contracts are imperfect correlation between changes in market values of
stocks held by the fund and the prices of futures contracts, and the possibility of an illiquid market.
Counterparty risk involving futures is mitigated because a regulated clearinghouse is the
counterparty instead of the clearing broker. To further mitigate counterparty risk, the fund trades
futures contracts on an exchange, monitors the financial strength of its clearing brokers and
clearinghouse, and has entered into clearing agreements with its clearing brokers. The
clearinghouse imposes initial margin requirements to secure the fund’s performance and requires
daily settlement of variation margin representing changes in the market value of each contract. Any
securities pledged as initial margin for open contracts are noted in the Schedule of Investments.
Futures contracts are valued at their quoted daily settlement prices. The notional amounts of the
contracts are not recorded in the Statement of Assets and Liabilities. Fluctuations in the value of
the contracts are recorded in the Statement of Assets and Liabilities as an asset (liability) and in
the Statement of Operations as unrealized appreciation (depreciation) until the contracts are
closed, when they are recorded as realized gains (losses) on futures contracts.
22
500 Index Fund
During the year ended December 31, 2021, the fund’s average investments in long and short
futures contracts represented less than 1% and 0% of net assets, respectively, based on the
average of the notional amounts at each quarter-end during the period.
3. Swap Contracts: The fund has entered into equity swap contracts to earn the total return on
selected reference stocks in the fund’s target index. Under the terms of the swaps, the fund
receives the total return on the referenced stock (i.e., receiving the increase or paying the
decrease in value of the selected reference stock and receiving the equivalent of any dividends in
respect of the selected referenced stock) over a specified period of time, applied to a notional
amount that represents the value of a designated number of shares of the selected reference
stock at the beginning of the equity swap contract. The fund also pays a floating rate that is based
on short-term interest rates, applied to the notional amount. At the same time, the fund generally
invests an amount approximating the notional amount of the swap in high-quality temporary cash
investments.
A risk associated with all types of swaps is the possibility that a counterparty may default on its
obligation to pay net amounts due to the fund. The fund’s maximum amount subject to
counterparty risk is the unrealized appreciation on the swap contract. The fund mitigates its
counterparty risk by entering into swaps only with a diverse group of prequalified counterparties,
monitoring their financial strength, entering into master netting arrangements with its
counterparties, and requiring its counterparties to transfer collateral as security for their
performance. In the absence of a default, the collateral pledged or received by the fund cannot be
repledged, resold, or rehypothecated. In the event of a counterparty’s default (including
bankruptcy), the fund may terminate any swap contracts with that counterparty, determine the net
amount owed by either party in accordance with its master netting arrangements, and sell or
retain any collateral held up to the net amount owed to the fund under the master netting
arrangements. The swap contracts contain provisions whereby a counterparty may terminate open
contracts if the fund’s net assets decline below a certain level, triggering a payment by the fund if
the fund is in a net liability position at the time of the termination. The payment amount would be
reduced by any collateral the fund has pledged. Any securities pledged as collateral for open
contracts are noted in the Schedule of Investments. The value of collateral received or pledged is
compared daily to the value of the swap contracts exposure with each counterparty, and any
difference, if in excess of a specified minimum transfer amount, is adjusted and settled within two
business days.
The notional amounts of swap contracts are not recorded in the Statement of Assets and
Liabilities. Swaps are valued daily based on market quotations received from independent pricing
services or recognized dealers and the change in value is recorded in the Statement of Assets and
Liabilities as an asset (liability) and in the Statement of Operations as unrealized appreciation
(depreciation) until periodic payments are made or the termination of the swap, at which time
realized gain (loss) is recorded.
During the year ended December 31, 2021, the fund’s average amounts of investments in total
return swaps represented less than 1% of net assets, based on the average of notional amounts
at each quarter-end during the period.
4. Federal Income Taxes: The fund intends to continue to qualify as a regulated investment
company and distribute all of its taxable income. The fund’s tax returns are open to examination by
the relevant tax authorities until expiration of the applicable statute of limitations, which is
23
500 Index Fund
generally three years after the filing of the tax return. Management has analyzed the fund’s tax
positions taken for all open federal and state income tax years, and has concluded that no
provision for income tax is required in the fund’s financial statements.
5. Distributions: Distributions to shareholders are recorded on the ex-dividend date. Distributions
are determined on a tax basis at the fiscal year-end and may differ from net investment income
and realized capital gains for financial reporting purposes.
6. Securities Lending: To earn additional income, the fund lends its securities to qualified
institutional borrowers. Security loans are subject to termination by the fund at any time, and are
required to be secured at all times by collateral in an amount at least equal to the market value of
securities loaned. Daily market fluctuations could cause the value of loaned securities to be more
or less than the value of the collateral received. When this occurs, the collateral is adjusted and
settled before the opening of the market on the next business day. The fund further mitigates its
counterparty risk by entering into securities lending transactions only with a diverse group of
prequalified counterparties, monitoring their financial strength, and entering into master securities
lending agreements with its counterparties. The master securities lending agreements provide
that, in the event of a counterparty’s default (including bankruptcy), the fund may terminate any
loans with that borrower, determine the net amount owed, and sell or retain the collateral up to
the net amount owed to the fund; however, such actions may be subject to legal proceedings.
While collateral mitigates counterparty risk, in the event of a default, the fund may experience
delays and costs in recovering the securities loaned. The fund invests cash collateral received in
Vanguard Market Liquidity Fund, and records a liability in the Statement of Assets and Liabilities
for the return of the collateral, during the period the securities are on loan. Collateral investments
in Vanguard Market Liquidity Fund are subject to market appreciation or depreciation. Securities
lending income represents fees charged to borrowers plus income earned on invested cash
collateral, less expenses associated with the loan. During the term of the loan, the fund is entitled
to all distributions made on or in respect of the loaned securities.
7. Credit Facilities and Interfund Lending Program: The fund and certain other funds managed by
The Vanguard Group ("Vanguard") participate in a $4.3 billion committed credit facility provided by a
syndicate of lenders pursuant to a credit agreement and an uncommitted credit facility provided by
Vanguard. Both facilities may be renewed annually. Each fund is individually liable for its
borrowings, if any, under the credit facilities. Borrowings may be utilized for temporary or
emergency purposes, subject to the fund’s regulatory and contractual borrowing restrictions. With
respect to the committed credit facility, the participating funds are charged administrative fees and
an annual commitment fee of 0.10% of the undrawn committed amount of the facility; these fees
are allocated to the funds based on a method approved by the fund’s board of trustees and
included in Management and Administrative expenses on the fund’s Statement of Operations. Any
borrowings under either facility bear interest at a rate based upon the higher of the one-month
London Interbank Offered Rate (or an acceptable alternate rate, if necessary), federal funds
effective rate, or overnight bank funding rate plus an agreed-upon spread, except that borrowings
under the uncommitted credit facility may bear interest based upon an alternate rate agreed to by
the fund and Vanguard.
In accordance with an exemptive order (the “Order”) from the SEC, the fund may participate in a
joint lending and borrowing program that allows registered open-end Vanguard funds to borrow
money from and lend money to each other for temporary or emergency purposes (the “Interfund
Lending Program”), subject to compliance with the terms and conditions of the Order, and to the
extent permitted by the fund’s investment objective and investment policies. Interfund loans and
24
500 Index Fund
borrowings normally extend overnight, but can have a maximum duration of seven days. Loans
may be called on one business day’s notice. The interest rate to be charged is governed by the
conditions of the Order and internal procedures adopted by the board of trustees. The board of
trustees is responsible for overseeing the Interfund Lending Program.
For the year ended December 31, 2021, the fund did not utilize the credit facilities or the Interfund
Lending Program.
8. Other: Dividend income is recorded on the ex-dividend date. Non-cash dividends included in
income, if any, are recorded at the fair value of the securities received. Interest income includes
income distributions received from Vanguard Market Liquidity Fund and is accrued daily. Premiums
and discounts on debt securities are amortized and accreted, respectively, to interest income over
the lives of the respective securities, except for premiums on certain callable debt securities that
are amortized to the earliest call date. Security transactions are accounted for on the date
securities are bought or sold. Costs used to determine realized gains (losses) on the sale of
investment securities are those of the specific securities sold.
Each class of shares has equal rights as to assets and earnings, except that each class separately
bears certain class-specific expenses related to maintenance of shareholder accounts (included in
Management and Administrative expenses) and shareholder reporting. Marketing and distribution
expenses are allocated to each class of shares based on a method approved by the board of
trustees. Income, other non-class-specific expenses, and gains and losses on investments are
allocated to each class of shares based on its relative net assets.
B. In accordance with the terms of a Funds' Service Agreement (the “FSA”) between Vanguard
and the fund, Vanguard furnishes to the fund investment advisory, corporate management,
administrative, marketing, and distribution services at Vanguard’s cost of operations (as defined by
the FSA). These costs of operations are allocated to the fund based on methods and guidelines
approved by the board of trustees and are generally settled twice a month.
Upon the request of Vanguard, the fund may invest up to 0.40% of its net assets as capital in
Vanguard. At December 31, 2021, the fund had contributed to Vanguard capital in the amount of
$27,259,000, representing less than 0.01% of the fund’s net assets and 10.90% of Vanguard’s
capital received pursuant to the FSA. The fund’s trustees and officers are also directors and
employees, respectively, of Vanguard.
C. Various inputs may be used to determine the value of the fund’s investments and derivatives.
These inputs are summarized in three broad levels for financial statement purposes. The inputs or
methodologies used to value securities are not necessarily an indication of the risk associated with
investing in those securities.
Level 1—Quoted prices in active markets for identical securities.
Level 2—Other significant observable inputs (including quoted prices for similar securities, interest
rates, prepayment speeds, credit risk, etc.).
Level 3—Significant unobservable inputs (including the fund’s own assumptions used to
determine the fair value of investments). Any investments and derivatives valued with significant
unobservable inputs are noted on the Schedule of Investments.
25
500 Index Fund
The following table summarizes the market value of the fund’s investments and derivatives as of
December 31, 2021, based on the inputs used to value them:
Level 1
($000)
Level 2
($000)
Level 3
($000)
Total
($000)
851,558,856
—
—
851,558,856
3,943,945
—
—
3,943,945
855,502,801
—
—
855,502,801
90,333
—
—
90,333
—
3,823
—
3,823
90,333
3,823
—
94,156
—
981
—
981
Investments
Assets
Common Stocks
Temporary Cash Investments
Total
Derivative Financial Instruments
Assets
Futures Contracts1
Swap Contracts
Total
Liabilities
Swap Contracts
1 Includes cumulative appreciation (depreciation) on futures contracts and centrally cleared swaps, if any, as reported in the Schedule of
Investments. Only current day’s variation margin is reported within the Statement of Assets and Liabilities.
D. Permanent differences between book-basis and tax-basis components of net assets are
reclassified among capital accounts in the financial statements to reflect their tax character. These
reclassifications have no effect on net assets or net asset value per share. As of period end,
permanent differences primarily attributable to the accounting for in-kind redemptions and swap
agreements were reclassified between the following accounts:
Amount
($000)
Paid-in Capital
30,493,819
Total Distributable Earnings (Loss)
(30,493,819)
Temporary differences between book-basis and tax-basis components of total distributable
earnings (loss) arise when certain items of income, gain, or loss are recognized in different periods
for financial statement and tax purposes; these differences will reverse at some time in the future.
The differences are primarily related to the deferral of losses from wash sales; and the recognition
of unrealized gains or losses from certain derivative contracts. As of period end, the tax-basis
components of total distributable earnings (loss) are detailed in the table as follows:
Amount
($000)
Undistributed Ordinary Income
158,544
Undistributed Long-Term Gains
—
Capital Loss Carryforwards
(7,943,854)
Qualified Late-Year Losses
—
Net Unrealized Gains (Losses)
421,728,577
26
500 Index Fund
The tax character of distributions paid was as follows:
Year Ended December 31,
Ordinary Income*
Long-Term Capital Gains
Total
2021
Amount
($000)
2020
Amount
($000)
10,472,717
9,830,085
—
—
10,472,717
9,830,085
* Includes short-term capital gains, if any.
As of December 31, 2021, gross unrealized appreciation and depreciation for investments and
derivatives based on cost for U.S. federal income tax purposes were as follows:
Amount
($000)
Tax Cost
433,774,224
Gross Unrealized Appreciation
435,085,394
Gross Unrealized Depreciation
(13,356,817)
Net Unrealized Appreciation (Depreciation)
421,728,577
E. During the year ended December 31, 2021, the fund purchased $97,675,825,000 of investment
securities and sold $57,757,704,000 of investment securities, other than temporary cash
investments. Purchases and sales include $73,377,274,000 and $40,328,054,000, respectively, in
connection with in-kind purchases and redemptions of the fund's capital shares.
The fund purchased securities from and sold securities to other Vanguard funds or accounts
managed by Vanguard or its affiliates, in accordance with procedures adopted by the board of
trustees in compliance with Rule 17a-7 of the Investment Company Act of 1940. For the year
ended December 31, 2021, such purchases were $2,237,588,000 and sales were $1,950,161,000,
resulting in net realized loss of $19,270,000; these amounts, other than temporary cash
investments, are included in the purchases and sales of investment securities noted above.
F. Capital share transactions for each class of shares were:
Year Ended December 31,
2021
2020
Amount
($000)
Shares
(000)
Amount
($000)
Shares
(000)
172,587
443
200,895
689
59,155
150
71,140
244
Redeemed
(1,327,476)
(3,329)
(1,133,392)
(3,781)
Net Increase (Decrease)—Investor Shares
(1,095,734)
(2,736)
(861,357)
(2,848)
Investor Shares
Issued
Issued in Lieu of Cash Distributions
27
500 Index Fund
Year Ended December 31,
2021
2020
Amount
($000)
Shares
(000)
Amount
($000)
Shares
(000)
79,932,127
204,970
63,687,902
221,707
—
—
—
—
(32,890,397)
(81,325)
(42,444,400)
(146,025)
47,041,730
123,645
21,243,502
75,682
40,334,657
103,425
41,835,006
146,878
4,903,407
12,411
4,891,793
16,726
(47,953,302)
(122,796)
(56,994,392)
(198,197)
(2,715,238)
(6,960)
(10,267,593)
(34,593)
10,078,153
48,403
6,510,968
41,288
1,515,092
7,237
1,461,548
9,420
(13,590,610)
(63,866)
(7,537,877)
(48,280)
(1,997,365)
(8,226)
434,639
2,428
ETF Shares
Issued
Issued in Lieu of Cash Distributions
Redeemed
Net Increase (Decrease)—ETF Shares
Admiral Shares
Issued
Issued in Lieu of Cash Distributions
Redeemed
Net Increase (Decrease)—Admiral Shares
Institutional Select Shares
Issued
Issued in Lieu of Cash Distributions
Redeemed
Net Increase (Decrease)—Institutional Select Shares
G. Management has determined that no events or transactions occurred subsequent to
December 31, 2021, that would require recognition or disclosure in these financial statements.
28
Report of Independent Registered
Public Accounting Firm
To the Board of Trustees of Vanguard Index Funds and Shareholders of Vanguard 500 Index Fund
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities, including the schedule of
investments, of Vanguard 500 Index Fund (one of the funds constituting Vanguard Index Funds,
referred to hereafter as the "Fund") as of December 31, 2021, the related statement of operations
for the year ended December 31, 2021, the statement of changes in net assets for each of the
two years in the period ended December 31, 2021, including the related notes, and the financial
highlights for each of the five years in the period ended December 31, 2021 (collectively referred
to as the "financial statements"). In our opinion, the financial statements present fairly, in all
material respects, the financial position of the Fund as of December 31, 2021, the results of its
operations for the year then ended, the changes in its net assets for each of the two years in the
period ended December 31, 2021 and the financial highlights for each of the five years in the
period ended December 31, 2021 in conformity with accounting principles generally accepted in
the United States of America.
Basis for Opinion
These financial statements are the responsibility of the Fund’s management. Our responsibility is
to express an opinion on the Fund’s financial statements based on our audits. We are a public
accounting firm registered with the Public Company Accounting Oversight Board (United States)
(PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S.
federal securities laws and the applicable rules and regulations of the Securities and Exchange
Commission and the PCAOB.
We conducted our audits of these financial statements in accordance with the standards of the
PCAOB. Those standards require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material misstatement, whether due
to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the
financial statements, whether due to error or fraud, and performing procedures that respond to
those risks. Such procedures included examining, on a test basis, evidence regarding the amounts
and disclosures in the financial statements. Our audits also included evaluating the accounting
principles used and significant estimates made by management, as well as evaluating the overall
presentation of the financial statements. Our procedures included confirmation of securities
owned as of December 31, 2021 by correspondence with the custodian, transfer agent and
brokers; when replies were not received from the transfer agent or brokers, we performed other
auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
/s/PricewaterhouseCoopers LLP
Philadelphia, Pennsylvania
February 16, 2022
We have served as the auditor of one or more investment companies in The Vanguard Group of
Funds since 1975.
29
Special 2021 tax information (unaudited) for Vanguard 500 Index Fund
This information for the fiscal year ended December 31, 2021, is included pursuant to provisions of
the Internal Revenue Code.
For corporate shareholders, 93.3% of investment income (dividend income plus short-term gains,
if any) qualifies for the dividends-received deduction.
The fund distributed $10,156,441,000 of qualified dividend income to shareholders during the fiscal
year.
The fund distributed $316,276,000 of qualified business income to shareholders during the fiscal
year.
30
The S&P 500 Index is a product of S&P Dow Jones Indices LLC, a division of S&P Global, or its affiliates (“SPDJI”), and
has been licensed for use by Vanguard. Standard & Poor’s® and S&P® are registered trademarks of Standard & Poor’s
Financial Services LLC, a division of S&P Global (“S&P”) and Dow Jones® is a registered trademark of Dow Jones
Trademark Holdings LLC (“Dow Jones”). The trademarks have been licensed to SPDJI and have been sublicensed for use
for certain purposes by Vanguard. Vanguard 500 Index Fund is not sponsored, endorsed, sold or promoted by SPDJI, Dow
Jones, S&P, any of their respective affiliates (collectively, “S&P Dow Jones Indices”). S&P Dow Jones Indices make no
representation or warranty, express or implied, to the owners of the Vanguard 500 Index Fund or any member of the
public regarding the advisability of investing in securities generally or in Vanguard 500 Index Fund particularly or the
ability of the S&P 500 Index to track general market performance. S&P Dow Jones Indices’ only relationship to Vanguard
with respect to the S&P 500 Index is the licensing of the Index and certain trademarks, service marks and/or trade names
of S&P Dow Jones Indices and/or its licensors. The S&P 500 Index is determined, composed and calculated by S&P Dow
Jones Indices without regard to Vanguard or the Vanguard 500 Index Fund. S&P Dow Jones Indices have no obligation to
take the needs of Vanguard or the owners of Vanguard 500 Index Fund into consideration in determining, composing or
calculating the S&P 500 Index. S&P Dow Jones Indices are not responsible for and have not participated in the
determination of the prices, and amount of Vanguard 500 Index Fund or the timing of the issuance or sale of Vanguard
500 Index Fund or in the determination or calculation of the equation by which Vanguard 500 Index Fund is to be
converted into cash, surrendered or redeemed, as the case may be. S&P Dow Jones Indices have no obligation or liability
in connection with the administration, marketing or trading of Vanguard 500 Index Fund. There is no assurance that
investment products based on the S&P 500 Index will accurately track index performance or provide positive investment
returns. S&P Dow Jones Indices LLC is not an investment advisor. Inclusion of a security within an index is not a
recommendation by S&P Dow Jones Indices to buy, sell, or hold such security, nor is it considered to be investment
advice.
S&P DOW JONES INDICES DOES NOT GUARANTEE THE ADEQUACY, ACCURACY, TIMELINESS AND/OR THE
COMPLETENESS OF THE S&P 500 INDEX OR ANY DATA RELATED THERETO OR ANY COMMUNICATION, INCLUDING
BUT NOT LIMITED TO, ORAL OR WRITTEN COMMUNICATION (INCLUDING ELECTRONIC COMMUNICATIONS) WITH
RESPECT THERETO. S&P DOW JONES INDICES SHALL NOT BE SUBJECT TO ANY DAMAGES OR LIABILITY FOR ANY
ERRORS, OMISSIONS, OR DELAYS THEREIN. S&P DOW JONES INDICES MAKE NO EXPRESS OR IMPLIED WARRANTIES,
AND EXPRESSLY DISCLAIMS ALL WARRANTIES, OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR
USE OR AS TO RESULTS TO BE OBTAINED BY VANGUARD, OWNERS OF THE VANGUARD 500 INDEX FUND, OR ANY
OTHER PERSON OR ENTITY FROM THE USE OF THE S&P 500 INDEX OR WITH RESPECT TO ANY DATA RELATED
THERETO. WITHOUT LIMITING ANY OF THE FOREGOING, IN NO EVENT WHATSOEVER SHALL S&P DOW JONES
INDICES BE LIABLE FOR ANY INDIRECT, SPECIAL, INCIDENTAL, PUNITIVE, OR CONSEQUENTIAL DAMAGES INCLUDING
BUT NOT LIMITED TO, LOSS OF PROFITS, TRADING LOSSES, LOST TIME OR GOODWILL, EVEN IF THEY HAVE BEEN
ADVISED OF THE POSSIBILITY OF SUCH DAMAGES, WHETHER IN CONTRACT, TORT, STRICT LIABILITY, OR OTHERWISE.
THERE ARE NO THIRD PARTY BENEFICIARIES OF ANY AGREEMENTS OR ARRANGEMENTS BETWEEN S&P DOW JONES
INDICES AND VANGUARD, OTHER THAN THE LICENSORS OF S&P DOW JONES INDICES.
31
This page intentionally left blank.
This page intentionally left blank.
This page intentionally left blank.
The People Who Govern Your Fund
The trustees of your mutual fund are there to see that the fund is operated and managed in your
best interests since, as a shareholder, you are a part owner of the fund. Your fund’s trustees also
serve on the board of directors of The Vanguard Group, Inc., which is owned by the Vanguard funds
and provides services to them.
A majority of Vanguard’s board members are independent, meaning that they have no affiliation
with Vanguard or the funds they oversee, apart from the sizable personal investments they have
made as private individuals. The independent board members have distinguished backgrounds in
business, academia, and public service. Each of the trustees and executive officers oversees 217
Vanguard funds.
Information for each trustee and executive officer of the fund appears below. That information, as
well as the Vanguard fund count, is as of the date on the cover of this fund report. The mailing
address of the trustees and officers is P.O. Box 876, Valley Forge, PA 19482. More information
about the trustees is in the Statement of Additional Information, which can be obtained, without
charge, by contacting Vanguard at 800-662-7447, or online at vanguard.com.
Interested Trustee1
Mortimer J. Buckley
Born in 1969. Trustee since January 2018. Principal
occupation(s) during the past five years and other
experience: chairman of the board (2019–present) of
Vanguard and of each of the investment companies
served by Vanguard; chief executive officer
(2018–present) of Vanguard; chief executive officer,
president, and trustee (2018–present) of each of the
investment companies served by Vanguard; president
and director (2017–present) of Vanguard; and
president (2018–present) of Vanguard Marketing
Corporation. Chief investment officer (2013–2017),
managing director (2002–2017), head of the Retail
Investor Group (2006–2012), and chief information
officer (2001–2006) of Vanguard. Member of the
board of governors of the Investment Company
Institute and the board of governors of FINRA. Trustee
and vice chair of The Shipley School.
Independent Trustees
Tara Bunch
Born in 1962. Trustee since November 2021. Principal
occupation(s) during the past five years and other
experience: head of global operations at Airbnb
(2020–present). Vice president of AppleCare
(2012–2020). Member of the board of directors of Out
& Equal (2002–2006), the advisory board of the
University of California, Berkeley School of
Engineering (2020–present), and the advisory board
of Santa Clara University’s Leavey School of Business
(2018–present).
Emerson U. Fullwood
Born in 1948. Trustee since January 2008. Principal
occupation(s) during the past five years and other
experience: executive chief staff and marketing
officer for North America and corporate vice president
(retired 2008) of Xerox Corporation (document
management products and services). Former
president of the Worldwide Channels Group, Latin
America, and Worldwide Customer Service and
executive chief staff officer of Developing Markets of
Xerox. Executive in residence and 2009–2010
Distinguished Minett Professor at the Rochester
Institute of Technology. Member of the board of
directors of the University of Rochester Medical
Center, the Monroe Community College Foundation,
the United Way of Rochester, North Carolina A&T
University, Roberts Wesleyan College, and the
Rochester Philharmonic Orchestra. Trustee of the
University of Rochester.
Amy Gutmann
Born in 1949. Trustee since June 2006. Principal
occupation(s) during the past five years and other
experience: president (2004–present) of the
University of Pennsylvania. Christopher H. Browne
Distinguished Professor of Political Science, School of
Arts and Sciences, and professor of communication,
Annenberg School for Communication, with
secondary faculty appointments in the Department of
Philosophy, School of Arts and Sciences, and at the
1 Mr. Buckley is considered an “interested person,” as defined in the Investment Company Act of 1940, because he is an officer of the
Vanguard funds.
Graduate School of Education, University of
Pennsylvania.
(business leadership), Chief Executives for Corporate
Purpose, and the NewYork-Presbyterian Hospital.
F. Joseph Loughrey
Born in 1949. Trustee since October 2009. Principal
occupation(s) during the past five years and other
experience: president and chief operating officer
(retired 2009) and vice chairman of the board
(2008–2009) of Cummins Inc. (industrial machinery).
Chairman of the board of Hillenbrand, Inc. (specialized
consumer services). Director of the V Foundation.
Member of the advisory council for the College of
Arts and Letters at the University of Notre Dame.
Chairman of the board of Saint Anselm College.
André F. Perold
Born in 1952. Trustee since December 2004. Principal
occupation(s) during the past five years and other
experience: George Gund Professor of Finance and
Banking, Emeritus at the Harvard Business School
(retired 2011). Chief investment officer and
co-managing partner of HighVista Strategies (private
investment firm). Member of the board
(2018–present) of RIT Capital Partners (investment
firm). Member of the investment committee of
Partners Health Care System.
Mark Loughridge
Born in 1953. Trustee since March 2012. Principal
occupation(s) during the past five years and other
experience: senior vice president and chief financial
officer (retired 2013) of IBM (information technology
services). Fiduciary member of IBM’s Retirement
Plan Committee (2004–2013), senior vice president
and general manager (2002–2004) of IBM Global
Financing, vice president and controller (1998–2002)
of IBM, and a variety of other prior management roles
at IBM. Member of the Council on Chicago Booth.
Sarah Bloom Raskin
Born in 1961. Trustee since January 2018. Principal
occupation(s) during the past five years and other
experience: deputy secretary (2014–2017) of the
United States Department of the Treasury. Governor
(2010–2014) of the Federal Reserve Board.
Commissioner (2007–2010) of financial regulation for
the State of Maryland. Colin W. Brown Distinguished
Professor of the Practice of Law (2021–present),
professor (2020–present), Distinguished Fellow of the
Global Financial Markets Center (2020–present), and
Rubenstein Fellow (2017–2020) at Duke University.
Trustee (2017–present) of Amherst College and
member of Amherst College Investment Committee
(2019–present). Member of the Regenerative Crisis
Response Committee (2020–present).
Scott C. Malpass
Born in 1962. Trustee since March 2012. Principal
occupation(s) during the past five years and other
experience: adjunct professor of finance at the
University of Notre Dame (2020–present). Chief
investment officer (retired 2020) and vice president
(retired 2020) of the University of Notre Dame.
Assistant professor (retired June 2020) of finance at
the Mendoza College of Business, University of Notre
Dame, and member of the Notre Dame 403(b)
Investment Committee. Member of the board of
Catholic Investment Services, Inc. (investment
advisors), the board of superintendence of the
Institute for the Works of Religion, and the board of
directors of Paxos Trust Company (finance).
Deanna Mulligan
Born in 1963. Trustee since January 2018. Principal
occupation(s) during the past five years and other
experience: chief executive officer of Purposeful
(advisory firm for CEOs and C-level executives;
2021–present). Board chair (2020), chief executive
officer (2011–2020), and president (2010–2019) of The
Guardian Life Insurance Company of America. Chief
operating officer (2010–2011) and executive vice
president (2008–2010) of Individual Life and Disability
of the Guardian Life Insurance Company of America.
Member of the board of the Economic Club of New
York. Trustee of the Partnership for New York City
David A. Thomas
Born in 1956. Trustee since July 2021. Principal
occupation(s) during the past five years and other
experience: president of Morehouse College
(2018–present). Professor of business administration,
emeritus at Harvard University (2017–2018). Dean
(2011–2016) and professor of management
(2016–2017) at the Georgetown University
McDonough School of Business. Director of DTE
Energy Company (2013–present). Trustee of Common
Fund (2019–present).
Peter F. Volanakis
Born in 1955. Trustee since July 2009. Principal
occupation(s) during the past five years and other
experience: president and chief operating officer
(retired 2010) of Corning Incorporated
(communications equipment) and director of Corning
Incorporated (2000–2010) and Dow Corning
(2001–2010). Director (2012) of SPX Corporation
(multi-industry manufacturing). Overseer of the Amos
Tuck School of Business Administration, Dartmouth
College (2001–2013). Member of the BMW Group
Mobility Council.
Executive Officers
Christine M. Buchanan
Born in 1970. Principal occupation(s) during the past
five years and other experience: principal of
Vanguard. Chief financial officer (2021–present) and
treasurer (2017–present) of each of the investment
companies served by Vanguard. Partner (2005–2017)
at KPMG (audit, tax, and advisory services).
David Cermak
Born in 1960. Principal occupation(s) during the past
five years and other experience: principal of
Vanguard. Finance director (2019–present) of each of
the investment companies served by Vanguard.
Managing director and head (2017–present) of
Vanguard Investments Singapore. Managing director
and head (2017–2019) of Vanguard Investments Hong
Kong. Representative director and head (2014–2017)
of Vanguard Investments Japan.
John Galloway
Born in 1973. Principal occupation(s) during the past
five years and other experience: principal of
Vanguard. Investment stewardship officer (September
2020–present) of each of the investment companies
served by Vanguard. Head of Investor Advocacy
(February 2020–present) and head of Marketing
Strategy and Planning (2017–2020) at Vanguard.
Special assistant to the President of the
United States (2015).
Peter Mahoney
Born in 1974. Principal occupation(s) during the past
five years and other experience: principal of
Vanguard. Controller (2015–present) of each of the
investment companies served by Vanguard. Head of
International Fund Services (2008–2014) at Vanguard.
Anne E. Robinson
Born in 1970. Principal occupation(s) during the past
five years and other experience: general counsel
(2016–present) of Vanguard. Secretary (2016–present)
of Vanguard and of each of the investment
companies served by Vanguard. Managing director
(2016–present) of Vanguard. Managing director and
general counsel of Global Cards and Consumer
Services (2014–2016) at Citigroup. Counsel
(2003–2014) at American Express.
Michael Rollings
Born in 1963. Principal occupation(s) during the past
five years and other experience: finance director
(2017–present) and treasurer (2017) of each of the
investment companies served by Vanguard.
Managing director (2016–present) of Vanguard. Chief
financial officer (2016–present) of Vanguard. Director
(2016–present) of Vanguard Marketing Corporation.
Executive vice president and chief financial officer
(2006–2016) of MassMutual Financial Group.
John E. Schadl
Born in 1972. Principal occupation(s) during the past
five years and other experience: principal of
Vanguard. Chief compliance officer (2019–present) of
Vanguard and of each of the investment companies
served by Vanguard. Assistant vice president
(2019–present) of Vanguard Marketing Corporation.
Vanguard Senior Management Team
Matthew Benchener
Joseph Brennan
Mortimer J. Buckley
Gregory Davis
John James
John T. Marcante
Chris D. Mclsaac
Thomas M. Rampulla
Karin A. Risi
Anne E. Robinson
Michael Rollings
Nitin Tandon
Lauren Valente
Connect with Vanguard® > vanguard.com
Fund Information > 800-662-7447
Direct Investor Account Services > 800-662-2739
Institutional Investor Services > 800-523-1036
Text Telephone for People Who Are Deaf or Hard
of Hearing > 800-749-7273
This material may be used in conjunction
with the offering of shares of any Vanguard
fund only if preceded or accompanied by
the fund’s current prospectus.
All comparative mutual fund data are from Morningstar,
Inc., unless otherwise noted.
You can obtain a free copy of Vanguard’s proxy voting
guidelines by visiting vanguard.com/proxyreporting or by
calling Vanguard at 800-662-2739. The guidelines are
also available from the SEC’s website, www.sec.gov. In
addition, you may obtain a free report on how your fund
voted the proxies for securities it owned during the 12
months ended June 30. To get the report, visit either
vanguard.com/proxyreporting or www.sec.gov.
You can review information about your fund on the SEC’s
website, and you can receive copies of this information,
for a fee, by sending a request via email addressed to
publicinfo@sec.gov.
Source for Bloomberg indexes: Bloomberg Index
Services Limited. Copyright 2022, Bloomberg. All rights
reserved.
© 2022 The Vanguard Group, Inc.
All rights reserved.
U.S. Patent Nos. 6,879,964
Vanguard Marketing Corporation, Distributor.
Q400 022022